Article 10 of the Saudi Banking Control Law

This article confines the bank's activity to banking business, preventing it from entering businesses that expose depositors' funds to commercial risks. A bank is prohibited from:

1. Trading: engaging, for its own account or on commission, in wholesale or retail trade, including import and export.
2. A direct interest in ventures: as a shareholder, partner, owner or in any capacity in a commercial, industrial, agricultural or other venture, except within the limits of paragraph 4. An exception is made for what passes to it in settlement of a debt owed to it by others, on condition that it is liquidated within two years or a longer period set by agreement with the Agency.
3. Buying shares of any bank operating in the Kingdom without the Agency's approval.
4. Owning shares of another joint-stock company established in the Kingdom whose value exceeds 10% of its paid-up capital, and provided the nominal value of these shares does not exceed 20% of the bank's paid-up capital and reserves; the Agency may increase both percentages when necessary.
5. Owning or leasing real estate unless it is necessary for managing its business or for housing or entertaining its staff, or in settlement of a debt owed to it.

Real estate that passes to the bank in settlement of a debt and is not needed for those purposes: it must be liquidated within 3 years of its passing, or within the periods the Agency approves on its conditions if there are justified exceptional circumstances. Real estate owned before the law took effect contrary to this is gradually liquidated within 7 years or the periods the Agency approves.

Exception: for justified special circumstances and with the Agency's approval, a bank may own real estate whose value does not exceed 20% of its paid-up capital and reserves. Anyone who needs advice on this may consult a lawyer specialized in banking and finance.